Perpetua Resources Corp. · TSX:PPTA
Perpetua Resources — Antimony Webinar (May 2021)
33 slides from Perpetua Resources's conference presentation, May 4, 2021
Slide 1: Antimony and the Stibnite Gold Project
An t i mo n y a n d t h e St i b n i t e G o l d P ro ject May 2 0 2 1 TSX :P P TA N A SDA Q:P P TA PERPETUA RESOURCES C r i t i c a l R e s o u r c e s . R e s p o n s i b l e M i n i n g . E n v i r o n m e n t a l R e s t o ra t i o n . www.perpetuaresou rc e s.c om
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Information and statement contained in this presentation that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the U
Slide 3: Why Perpetua Resources?
WHY PERPETUA RESOURCES? ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15-year reserve life and <3-year payback period * ✓ Re-establishing U.S. critical mineral production ✓ Located in stable mining jurisdiction with Idaho c
Slide 4: The Stibnite Gold Project
THE STIBNITE GOLD PROJECT We can take an area abandoned after 100 years of mining activity and use a sustainable approach to restore the environment and develop a modern mining project with critical mineral production 4
Slide 5: One of the Largest Gold Reserves in the U.S.
ONE OF THE LARGEST GOLD RESERVES IN THE U.S. 1,2 1,2 Independent Gold Project Mineral Reserves Stibnite 3 4.8 Marigold 3.6 Castle Mountain 3.6 Haile 2.9 Round Mountain 2.2 Bald Mountain 1.1 0.0 1.0 2.0 3.0 4.0 5.0 2020 Year-End Proven & Probable Mineral Reserves - Gold (Moz) Source: S&P Gl obal – Ma
Slide 6: Lowest Quartile All-in-Sustaining Costs
LOWEST QUARTILE ALL-IN-SUSTAINING COSTS 1 $2,500 Global Gold Mine Cost Curve1 All-in-Sustaining Cost ($/oz) $2,000 $1,500 Stibnite Gold Project1 $1,000 Yr1-4 LOM $500 $0 Average Annual Gold Sales (represented as bar width) Source: S&P Gl obal – Ma rket Intelligence 1. Based on the 2020 Feasibility S
Slide 7: Why Antimony?
WHY ANTIMONY? Christopher Ecclestone, Principal and Mining Strategist, Hallgarten & Company 7
Slide 8: Critical Mineral Antimony Supply
CRITICAL MINERAL ANTIMONY SUPPLY “Critical Minerals” are metals and non-metals essential to economic and national security and are vulnerable to supply chain disruptions World Antimony 2020 Production (USGS) Turkey Australia Bolivia 1% 2% Burma ▪ Antimony is one of 35 federally 1% 4% listed critical
Slide 9: Antimony in the Energy Sector
ANTIMONY IN THE ENERGY SECTOR CURRENT ENERGY USES: “A low-carbon future will be very mineral intensive - Copper wiring insulation because clean energy technologies need more materials than fossil fuel–based electricity generation - Lead-acid batteries technologies.” - Work Bank, Minerals for Climate
Slide 10: Antimony in Liquid Metal Batteries
ANTIMONY IN LIQUID METAL BATTERIES Mass storage devices mesh with energy grids to provide off-peak storage of electricity “Antimony is key to liquid metal battery storage solutions needed for a low carbon energy grid.” - Hallgarten and Company, Antimony Molten-Salt Batteries, the New Metal in Mass S
Slide 11: Antimony in the Technology Sector
ANTIMONY IN THE TECHNOLOGY SECTOR Critical flame retardant: ~90% production ends up in electronics and plastics CURRENT TECH USES FUTURE TECH USES - Circuit boards - High-quality clear glass Faster, smaller, more efficient systems - Semi-conductors - Lithium-ion batteries - Electrical switches - Flu
Slide 12: Antimony in the Defense Sector
ANTIMONY IN THE DEFENSE SECTOR “…Antimony is the last of the non-ferrous group of strategic metals, but it by no means the least important, for it has more uses of direct military character than any other member of the group…” - G.A. Rousch, The Military Engineer, 1937 WIDE VARIETY OF MILITARY USES
Slide 13: Future Supply
FUTURE SUPPLY China dominates the world’s antimony and beneficiation facilities, essentially controlling both the upstream and downstream ends of the commodity supply chain. 600,000 Reported World Reserves Antimony (2020) in metric tonnes 500,000 480,000 400,000 350,000 310,000 300,000 260,000 200,0
Slide 14: Antimony Strategic Value Recognized
ANTIMONY STRATEGIC VALUE RECOGNIZED ANTIMONY (Sb): A “critical mineral” that is vital to U.S. national security and supports the energy transition $5.25 Antimony Price $11,000 $4.75 $10,000 $4.25 Price ($/lb.) Price ($/mt) $9,000 $3.75 $8,000 $3.25 $7,000 $2.75 $6,000 $2.25 $5,000 Source: Bloomberg
Slide 15: Why the Stibnite Gold Project?
WHY THE STIBNITE GOLD PROJECT? Chris Dail, Exploration Manager, Perpetua Resources 15
Slide 16: Historical Stibnite Mining District
1890s The Thunder Mountain gold rush brings mining to the area 1900-1930 The town of Stibnite is established HISTORICAL STIBNITE 1938 Mining at Yellow Pine pit stops salmon migration upstream 1941-1950 The town of Stibnite booms when antimony & tungsten were declared critical & strategic minerals MI
Slide 17: Munitions Board quote on Stibnite tungsten mine
“In the opinion of the Munitions Board, the discovery of that tungsten mine at Stibnite, Idaho in 1942 shortened World War II by at least 1 year and saved the lives of a million American soldiers.” The US Senate Congressional Record. 1956 17
Slide 18: Mineral Resources & Reserves
MINERAL RESOURCES & RESERVES Proven & Probable Mineral Reserves: Measured & Indicated Mineral Resources: 4.8 Mozs Gold @1.43 g/t 6.0 Mozs Gold @1.42g/t 148 M lbs antimony at 0.06% contained in 104 Mt 206 Mlbs antimony at 0.07% contained in 132 Mt 3.500 Gold (thousands ounces) Gold M&I Mineral Resour
Slide 19: Stibnite Gold Project (SGP)
STIBNITE GOLD PROJECT (SGP) Ore Process - Dore metallurgical recoveries Crushing, SAG & Ball Milling - Gold at 68% - 91% (88.9% average) - Silver at 23.2% Average - Antimony concentrate metallurgical recoveries Antimony High Sb Stibnite Flotation Concentrate Sulfide - Antimony at 84% - 91% (89.5% av
Slide 20: Perpetua Expected to Supply >35% of U.S. Demand
PERPETUA EXPECTED TO SUPPLY >35% OF U.S. DEMAND 1 Stibnite Gold Project Recovered Antimony 2 50,000,000 45,000,000 2020 U.S. Annual Consumption 1 40,000,000 35,000,000 59% Antimony (lbs) 30,000,000 51% 25,000,000 38% 39% 20,000,000 15,000,000 24% 17% 10,000,000 5,000,000 0 Year 1 Year 2 Year 3 Year
Slide 21: Exploration Upside
EXPLORATION UPSIDE Stibnite District - Exploration (2010-2015) defined core area “bulls-eye” with extremely anomalous antimony in stream sediments, soils and rocks - Antimony associated with tungsten and related to younger stages of mineralization; intrusive- and sediment-hosted - Virtually no drill
Slide 22: Hangar Flats Deposit Upside
HANGAR FLATS DEPOSIT UPSIDE 22
Slide 23: Exploration Upside: Scout
EXPLORATION UPSIDE Scout - 1950s: Discovery during fed-sponsored exploration - 1970s-90s: Explored as gold prospect - 2012-2013: Exploration indicated presence of large Sb-rich system blind beneath glacial overburden - High grades of Sb suggest potential for underground mining - Proposed exploration
Slide 24: Quote on domestic supply of critical materials
“ Ensuring we have a steady domestic supply of these materials, without reliance on foreign sources, will keep our nation at the forefront of technical innovation Quote from whileCaucus the Critical Materials creating (House more jobs for of Representatives) Pull bipartisan quote American workers. -
Slide 25: Why Perpetua Resources?
WHY PERPETUA RESOURCES? Jessica Largent, VP Investor Relations & Finance, Perpetua Resources 25
Slide 26: Gaining Momentum with Near-Term Catalysts
GAINING MOMENTUM WITH NEAR-TERM CATALYSTS Recent Accomplishments: Upcoming Milestones: ✓ Draft Environmental Impact Statement (Aug 2020) ❑ Final Environmental Impact Statement & Draft Record of Decision (ROD) (Q3 2021)** ✓ Successful comment period (Aug-Oct 2020) ❑ Final RoD (Q4 2021) ** ✓ Feasibili
Slide 27: Significant Leverage to Higher Gold Prices
SIGNIFICANT LEVERAGE TO HIGHER GOLD PRICES TRADING AT DEEP DISCOUNT TO PROJECT NET PRESENT VALUE 1 $2,350 $4,603 $2,943 Gold Price (US$/oz) $2,100 $3,815 $2,404 $1,850 $3,026 $1,864 $1,600 $2,232 NPV at 0% $1,320 NPV at 5% $1,350 $1,434 $771 Perpetua Mkt Cap2 $358 Current Mkt Cap2 Only 19% of NPV2 (
Slide 28: Valuation Set to Re-rate Once Permitted
VALUATION SET TO RE-RATE ONCE PERMITTED 200% Pre-Permitting Permitted Market Cap As % of Spot NAV4 150% 134% 113% 100% 59% 61% 56% 50% 45% 36% 19% 24% 0% 1,2,3 Perpetua Integra Gold Standard Ascot Marathon Skeena Sabina NovaGold Orla 1. Perpetua Resources based on market capitalization assumes full
Slide 29: A Unique American Opportunity
A UNIQUE AMERICAN OPPORTUNITY PERPETUA RESOURCES ✓ Redeveloping one of largest, highest grade and lowest cost gold projects in the U.S.* ✓ Superior project economics with ~15 year reserve life and <3 year payback period* ✓ Re-establishing U.S. critical mineral production ✓ Located in stable mining j
Slide 30: Questions & Conversation
QUESTIONS & CONVERSATION
Slide 31: Webinars
WEBINARS www.perpetuaresources.com/connect/virtual-events
Slide 32: Thank You.
THANK YOU. w w w. p e r p e t u a r e s o u r c e s . c o m 32
Slide 33: Regulatory Information
REGULATORY INFORMATION The FS was compiled by M3 Engineering & Technology Corporation (“M3”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the direction of independent qualified persons (as defined in NI 43-101) (“Independent QPs”).